SK Hynix Shares Soar as Mass Production of Advanced AI Chips Begins

SK Hynix Shares Surge on Mass Production of Advanced Chips, Strong Micron Outlook

SK Hynix's shares posted their largest gain in over a year after it started mass production of an updated chip and U.S. peer Micron Technology reported strong earnings on robust AI demand. Shares of the South Korean memory-chip maker advanced 9.4% to 180,900 won, equivalent to $135.45, on Thursday. SK Hynix said Thursday that it started mass producing the latest generation of high-bandwidth memory chips, called HBM3E, with 12 layers and 50% more capacity, just six months after delivering the HBM3E 8-layer product to customers. SK Hynix, a main supplier of HBM chips for Nvidia's graphics-processing units that power artificial-intelligence systems, plans to supply the latest HBM3E chip to customers by the end of the year, it added. Domestic rival Samsung Electronics had said in July that it was ready to ramp up production of 12-layer HBM3E chips, with plans to offer them to customers in the second half of this year. Meanwhile, Micron's better-than-expected guidance for the current quarter also supported sentiment on SK Hynix's shares. Micron expects both revenue and adjusted earnings to come in ahead of analyst views, citing robust AI demand behind sales of chips used in data centers, it said after announcing fiscal fourth-quarter results Wednesday. SK Hynix's market capitalization has doubled in the past year to nearly $100 billion, with shares rising 28% year to date, as investors bet on the AI frenzy that has propelled the semiconductor sector out of a long slump. The South Korean company said in May that its HBM products were sold out for 2024 and almost fully booked for 2025.

SK Hynix announces mass production of updated AI chip, spurring rally in Asian semiconductor stocks

SK Hynix shares surged more than 9% Thursday morning after the company said it has started mass production of a new version of its high-bandwidth memory chips and aims for delivery by year-end. The product would be the world's first 12-layer version of HBM3E, which refers to the latest generation of an advanced memory chip that's capable of handling high-end generative artificial intelligence work. SK Hynix said the chip would have a 36 gigabyte capacity, the largest among existing HBM chips. That's a 50% increase in capacity from the company's previous eight-layer chip, which it started mass producing in March, while maintaining the same thickness, the company said. The South Korean giant has been a main supplier of the high-bandwidth memory chips catering to AI chipsets for companies like Nvidia. It plans to deliver the latest product by the end of the year. The development came as the world's second-largest memory chipmaker seeks to continue its dominance in the AI memory chip market.

SK Hynix Shares Surge as It Begins Advanced AI Chip Production

SK Hynix Inc. shares surged after it said it's begun volume production of a more advanced memory chip for artificial intelligence and chipmaker Micron Technology Inc. reported strong results. The company's shares climbed as much as 8.3% in early trading in Seoul. That puts the company, the leader in producing high-bandwidth memory chips, up more than 25% for the year.

SK hynix shares see record yearly gain from world's first 12-layer HBM3E

The 36-gigabit 12-layer HBM3E chip mass- produced by SK hynix / Courtesy of SK hynix By Yi Whan-woo SK hynix advanced at the sharpest pace this year on the stock market on Thursday as it began the mass production of 12-layer high bandwidth memory (HBM) chips. The semiconductor arm of SK Group became the first in the world to mass produce the highest capacity and fastest HBM chip to date. The 36-gigabit 12-layer HBM3E chip will be supplied to U.S. AI chip giant Nvidia within this year, prompting SK hynix to consolidate its market competence against cross-town rivals Samsung Electronics. Under these circumstances, SK hynix gained 15,600 won, or 9.44 percent, from the previous session's close, reaching 180,900 won ($136.20) on the benchmark KOSPI on Thursday. It was the steepest gain SK hynix has experienced so far this year. The company's share price also returned to the 180,000 won range for the first time since Aug. 23, when it closed at 185,500 won. It dipped to as low as 152,800 won on Sept. 19 over concerns about the global chip cycle. "The mass production of 12-layer HBM3E chip is anticipated to push SK hynix upward on the stock market, despite lingering concerns over the industry's outlook," said Kim Kwang-jin, an analyst at Hanwha Investment & Securities. SK hynix first began supplying 8-layer HBM3E chips to Nvidia in March. Market observers assess that the 12-layer HBM3E chip will dominate the HBM market, citing reports on Nvidia's upcoming product lineups that feature this chip.

Nvidia Supplier SK Hynix Soars 9% As Mass Production Of Advanced HBM3E Chips Begins Amid Burgeoning AI Demand - Micron Technology (NASDAQ:MU), SK Hynix (OTC:HXSCF)

SK Hynix HXSCF shares soared over 9% on Thursday following the commencement of mass production of their latest high-bandwidth memory chips. What Happened: The South Korean company has introduced the HBM3E chips, which feature 12 layers and offer 50% more capacity than the previous eight-layer versions. This development positions SK Hynix ahead in the competitive race to meet the growing demand driven by artificial intelligence advancements. The company, a primary supplier to NVIDIA Corp NVDA, plans to deliver these advanced chips to unnamed customers by the end of the year. Samsung Electronics SSNLF had previously announced in July that it would supply its HBM3E 12-high units to customers in the latter half of this year. Meanwhile, Micron Technology Inc MU disclosed earlier this month that it is shipping production-capable HBM3E 12-high units to key industry partners for qualification. See Also: Micron Q4 Earnings: Revenue, EPS Beat On 'Robust AI Demand,' Company Sees 'Significantly Improved' Profitability Ahead, Shares Surge Why It Matters: In recent months, SK Hynix has experienced significant fluctuations in its stock price. Last week, the company's shares dropped to their lowest level since February after Morgan Stanley downgraded the stock, citing deteriorating memory conditions. This downgrade slashed the target price to 120,000 won from 260,000 won. Despite this, SK Hynix has been riding a wave of optimism driven by the AI boom. In July, Goldman Sachs and Citigroup predicted further growth for the company, driven by high demand for AI and positive earnings forecasts. Goldman Sachs raised its stock-price target to 290,000 won, while Citigroup increased its prediction to 350,000 won. Additionally, SK Group, the parent company of SK Hynix, announced a massive $56 billion investment in AI and semiconductor technology by 2026. This investment aims to bolster the company's supply chains for emerging technologies, including high-bandwidth memory chips. Price Action: SK Hynix is currently trading at 180,100 won, with a surge of 8.95% on Thursday. The stock has gained 26.47% year-to-date, according to data from Benzinga Pro. Read Next: General Motors To Lay Off About 1700 Employees Ahead Of Chevrolet Malibu Phase-Out And Re-Tooling For EV Production Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Major global chip stocks rally on Micron's 15% surge; ASML up 4%

Shares of Micron jumped nearly 15% in after-hours trade in the U.S. on Wednesday. Its bigger rivals Samsung Electronics and SK Hynix both saw their shares rise on Thursday in South Korea. Samsung closed more than 4% higher while SK Hynix closed up more than 9%. SK Hynix was buoyed by an announcement on Thursday after the company said it has started mass production of a new version of its high-bandwidth memory (HBM) chips and aims for delivery by the year-end. SK Hynix and Micron are both suppliers of memory chips to Nvidia's products designed for artificial intelligence processes in data centers. HBM chips are seen as key for AI. Micron's earnings highlighted that demand for data center chips are still strong as investors look for signs on whether a rally in AI-related stocks will continue. Micron reiterated that its HBM chips are sold out for 2024 and 2025. In Japan, shares of Tokyo Electron jumped 8%. Part of this rise was fuelled by comments from the company's CFO to the Nikkei that it sees AI-related sales rising about 15% in its current fiscal year to 690 billion yen ($4.8 billion). SoftBank Group, which is the majority owner of chip designer Arm, was up more than 4%. The optimism around Asian chip stocks filtered through to Europe.